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Abstract:

Economics of Industry Paper
International Spillovers and Absorptive Capacity: A cross-country, cross-sector analysis based on European patents and citations.
Maria Luisa Mancusi March 2004
Paper No' EI 35:
Full Paper (pdf)

Tags: r&d spillovers; absorptive capacity and patent citations.

This paper provides an empirical assessment of the effect of national and international knowledge spillovers on innovation at a finely defined sectoral level for six major industrialised countries over the period 1981-1995. International spillovers are always found to be effective in increasing innovative productivity. The paper then uses self-citations to investigate the role of prior R&D experience in enhancing a country¿s ability to understand and improve upon external knowledge (absorptive capacity). The empirical results show that absorptive capacity increases the elasticity of a country¿s innovation to both national and international spillovers. The larger the gap of a country with the technological leaders, the weaker is this effect, but the larger is the country¿s potential to increase it.